Phil Mickelson Will Pay Back Earnings to SEC Resulting from Alleged Insider Trading

Phil Mickelson hasn’t had a good run on the golf course lately – only two top 10 finishes in the last 10 majors, and only one major win dating back to 2011 – and his personal life took a hit today as he was accused of Insider Trading.

This isn’t a new story, as it dates back to 2014, but Mickelson was formally accused today. From Marketwatch:

"The Securities and Exchange Commission said that Mickelson used an alleged tip he received from gambler William “Billy” Walters, who got information from a former Dean Foods DF, +0.28% chairman, Thomas Davis. The SEC said that Walters called, and then sent text messages, to Mickelson, who then bought a $2.4 million position in three accounts he controlled. Those securities “dwarfed” Mickelson’s other holdings, which were collectively valued at less than $250,000, the SEC said. Mickelson had not been a frequent trader and these were his first ever Dean Foods purchases, the SEC said. Mickelson made a profit of approximately $931,000 from the stock he held for about a week."

If you’ve seen the fantastic Billions on Showtime, you know this sort of thing happens all the time, but the goal is to nab a whale or two in hopes of proving to the public that you’re doing your job. Mickelson, with a reported net worth of over $150 million, certainly qualifies as a whale.

But it’s not always a slam dunk victory to chase wealthy men – see Mark Cuban in 2013.

[UPDATE: It should be noted that Mickelson is not being charged criminally by the SEC, but is being charged civilly, with the SEC seeking to recoup the amount made in trading on the stock in question.

According to Will Gray, Mickelson has already agreed to return all money made on the 2012 trade. That should be the end of this story from Mickelson’s end, since he faces no criminal charges.